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2014 (3) TMI 1027 - AT - Income TaxDeduction u/s.80IB disallowed - as per revenue the assessee was not having factory license before it started manufacturing activities - Held that:- The basis for disallowance of deduction u/s.80IB was not that the production had not been started but the controversy was that the license was issued after the close of the said financial year; hence, the assessee’s claim of start of manufacturing activity was allegedly incorrect. It is worth to mention at this juncture that in assessee’s own case for A.Ys. 2005-06 and 2006-07, after appreciation of all the facts and evidences, the Respected Co-ordinate Benches have decided this controversy in favour of the assessee. Therefore, while deciding an appeal of the Revenue for subsequent year, i.e., 2007-08 the judicial propriety requires to follow the earlier precedents of the Respected Co-ordinate Benches pronounced in assessee’s own case. Firstly on this basis, we hereby affirm the relief granted by the learned CIT(A). What is essential is that the assessee should manufacture or produce an article or thing before the prescribed date. It was held that if there is any violation of any provision of any other statute then the assessee has to explain the same to the authorities implementing those statutes but the same could not be the basis of denial of benefit u/s. 80IB of the IT Act. On this reasoning as well we hereby uphold the view of learned CIT(A) in deleting the disallowance. - Decided in favour of assessee
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